How Do DoD Cost and Pricing Policy Changes Affect Defense Proposals?

According to FAR Subpart 15.4 on Acquisition.gov, contract pricing rules apply to negotiated prime contracts, subcontracts, and modifications. The subpart says contracting officers shall obtain certified cost or pricing data when required, or data other than certified cost or pricing data when it is not, and they must obtain only the type and quantity of data necessary to establish a fair and reasonable price. It also states that requesting unnecessary data can increase proposal preparation costs, extend acquisition lead time, and consume additional contractor and Government resources. DFARS Subpart 215.4 adds DoD-specific guidance: the contracting officer is responsible for deciding whether the information provided is sufficient to determine price reasonableness, may not use contract terms that block access to needed supporting information, and must require uncertified cost data in the form regularly maintained in the offeror’s business operations. PGI 215.404-1 further says that if the offeror refuses needed data, the issue is elevated, and if previous sales data is not enough, the contracting officer may need other data and, if necessary, a cost analysis.

FAR Subpart 15.403-1 says certified cost or pricing data shall not be obtained at or below the simplified acquisition threshold and lists exceptions where it is not required, including adequate price competition, prices set by law or regulation, commercial products or commercial services, and waivers. DFARS Subpart 215.403 says adequate price competition is a case-by-case determination, and for dual or multiple source programs the reasonableness of all awarded prices must be clearly established through price analysis. PGI 215.404-1 adds that sole source commercial products or services require particular attention, and when previous sales data is insufficient, the contracting officer must obtain data other than certified cost or pricing data and, if necessary, perform a cost analysis. The effect on proposals is a tighter focus on the specific data the Government says is needed to support price reasonableness.